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MODV vs. GDRX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Medical Services sector might want to consider either ModivCare (MODV - Free Report) or GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
ModivCare and GoodRx Holdings, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MODV has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MODV currently has a forward P/E ratio of 18.64, while GDRX has a forward P/E of 97.65. We also note that MODV has a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GDRX currently has a PEG ratio of 3.19.
Another notable valuation metric for MODV is its P/B ratio of 4.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 15.87.
These metrics, and several others, help MODV earn a Value grade of B, while GDRX has been given a Value grade of D.
MODV has seen stronger estimate revision activity and sports more attractive valuation metrics than GDRX, so it seems like value investors will conclude that MODV is the superior option right now.
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MODV vs. GDRX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical Services sector might want to consider either ModivCare (MODV - Free Report) or GoodRx Holdings, Inc. (GDRX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
ModivCare and GoodRx Holdings, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MODV has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MODV currently has a forward P/E ratio of 18.64, while GDRX has a forward P/E of 97.65. We also note that MODV has a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GDRX currently has a PEG ratio of 3.19.
Another notable valuation metric for MODV is its P/B ratio of 4.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GDRX has a P/B of 15.87.
These metrics, and several others, help MODV earn a Value grade of B, while GDRX has been given a Value grade of D.
MODV has seen stronger estimate revision activity and sports more attractive valuation metrics than GDRX, so it seems like value investors will conclude that MODV is the superior option right now.